5) Lawton expects to generate sales of P44,000,000 in the coming year. Lawton has estimated that it takes an average of three days for payments to reach their central office and an additional two days to process the payments.Lawton uses a 360-day year in all calculations and can invest free funds at 6%. What is the opportunity cost of the funds tied up in the mail and processing?

6) Gilmore Company has material that has a P7 per meter carrying cost per year. This textile is used at a rate of 25,000 meters per year, and ordering costs are P5 per order. Question in no.6 6.a.) What is the economic order quantity for this fabric? 6.b.) What are the annual inventory costs for this company if it orders in this quantity?

7) There are weaknesses associated with several assumptions of EOQ model employed by Santolan. What are these weaknesses